Currency Strength Meter Indicator for MT4 and MT5

The Currency Strength Meter in Metatrader 4/5 is a useful tool for gauging the relative value of different currencies. The strength of a currency is measured against a group of other currencies and plotted on a line graph. Indicators based on the relative strengths of different currencies are frequently used to spot possible trading opportunities. One may, for instance, decide to purchase a currency with the expectation that its value would continue to rise if an indicator reveals that this currency is among the strongest available.

Imagine you are a trader thinking about entering a position in the EUR/USD currency pair. You want to know how the Euro is doing in relation to other currencies, so you look at the Currency Strength Indicator before making a final decision. Indicator value of 70 indicates that the Euro is relatively strong. You can assume that the euro will continue to rise against the dollar and open a long position in the EUR/USD pair as a result of this.

In this case, the Currency Strength Indicator helped the trader make an informed decision about which currency pair to trade. The signal helped the trader out greatly by revealing the euro's relative strength, which they could then exploit to their advantage.